Friday, May 26, 2006
This post is a continuation of The 8 Shocking, Outrageous Truths about Capitalism.
9. The enemies of Capitalism depend on Capitalism for their survival.
Capitalism doesn't need Socialism, but without the market price information provided by Capitalism, socialist planners would be completey without any guide whatsoever as to how to allocate resources.
Capitalism doesn't need Radical Islamic Fascism, but Al-Qaeda would be out of business without Western Free Speech, petroleum extraction technology, airplanes and the internet. Every tool they use against us (except maybe the AK-47) was invented in the United States.
10. Capitalism is the Solution to Radical Islamic Fascism.
Of course this isn't easy. But common arabs and muslims throughout the world, who have education and jobs, and live under the rule of law, and taste the liberty and prosperity of the free market, are not candidates for recruitment into the rabid Jihad. Capitalism is the greatest threat to undermine any philosophy of hate.
Tuesday, May 23, 2006
The Wall Street Journal Editorial Page is one of the best sources for daily capitalist analysis of current issues. I recommend all my readers to subscribe (I'm not paid to say that, but I'm working on it).
Today (Tuesday, May 23) the title is 'Mexican Working Capital' and the subject is remittances from Mexican immigrants to their families in Mexico. The anti-immigration conservatives have it wrong. The money that workers earn and send to their families is beneficial to both sides of the border, certainly superior to foreign aid and government monopolies such as Pemex. One of the most beneficial points is that the money doesn't go through the corrupt middlemen.
Subscribe and read the whole article at:
Sunday, May 21, 2006
The books listed below are in my library, and ought to be in yours.
- If you want to be an informed citizen,
- If you want to stop being at the mercy of manipulators in politics and the media,
- If you want to promote general liberty, peace and prosperity in your own country and time,
- If you want to have influence over the cycle of crises and group conflict,
- If you want to understand the inviolable, natural laws governing human society,
- (or even if you want to preserve and expand socialism and intellectually arm yourself against the capitalist pigs!)
…then you must learn the discipline and logic of economics, not as you were taught by your Keynesian college professor or your closet socialist news commentator, but from the horses mouth; the men and women who have taken the pains to discover and articulate those laws. Their names are Ludwig von Mises, Adam Smith, Thomas Sowell, Ayn Rand, Friedrich von Hayek, Carl Menger, Eugen von Böhm-Bawerk, George Gilder, Milton Friedman, George Reisman, David Ricardo, John Locke, Frédérique Bastiat, Robert Bartely, Hernando
So as not to overwhelm the newcomer to the subject, I have organized this bibliography into 4 parts:
- The Top Ten Easy-to-Read popular expositions on economics and capitalism
- The Top Ten Hardcore Scholarly Treatises on economics
- The Top Five Most Dangerous Anti-capitalist Rants
- Other Books of Interest
The Top Ten Easy-to-Read popular expositions on economics and capitalism:
- Sowell, Thomas. Basic Economics,
New York NY
- Sowell, Thomas. Applied Economics: Thinking Beyond Stage One, 2004 by Basic Books,
New York NY
- Gilder, George. Wealth and Poverty, 1993 by ICS Press
. Capitalism and Freedom, 1962, 1982 by the Milton Press Universityof Chicago
- Friedman, Milton and Rose. Free to Choose, 1980 by Harcourt Brace Jovanovich
, Hernando. The Mystery of Capital: Why Capitalism Triumphs in the West and Fails everywhere else, 2000 by Basic Books De Soto
- Hazlitt, Henry, Economics in One Lesson: The Shortest and Surest Way to Understand Basic Economics, 1988 by Three Rivers Press
- Rand, Ayn. Capitalism: The Unknown Ideal, 1967 by Signet
- Von Hayek, Friedrich. The Road to Serfdom, 1994 by the
Press Universityof Chicago
- Hyde, Howard. Capitalism is the Solution. Not yet completed for publication. Give me time. Better yet, give me money! I’m motivated by profit.
The Top Ten Hardcore Scholarly Treatises on economics
Most of the following are all of the 1,000-plus page, literary academic variety. Difficult to approach at first, but well worth the journey. You’ll never go back to World Wrestling Federation reruns after you’ve tasted this!
- Locke, John. Second Treatise of Government, first published in 1689. Contains the best-articulated foundation of private property and limited government to influence the American revolution of 1776.
- Smith, Adam. An Inquiry into the Nature and Causes of the Wealth of Nations, first published in Glasgow, Scottland in 1776; 1977 by the
. Universityof Chicago Press
- Ricardo, David. Principles of Political Economy and Taxation, first published in 1817; see The Works of David Ricardo collected by J.R. McCulloch, 2002, by the University of the Pacific.
- Say, Jean-Baptiste. A Treatise on Political Economy, first published in 1836; 2001 by Transaction Publishers
- Mill, John Stuart. Principles of Political Economy, first published in 1848; 2004 by Prometheus Books
- Bastiat, Frederique. Complete Works. Volumes I-VII including Economic Harmonies, Economic Sophisms, The Law and more, first published circa 1860; see 1907 by Guillamin
- Menger, Carl. Principles of Economics, first published 1871; available from the Ludwig von Mises Institute: www.mises.org.
- Mises, Ludwig von. Human Action, first published in 1949. Get the Scholar’s Edition 1998 by the Ludwig von Mises Institute.
- Rothbard, Murray. Man, Economy and State with Power and Market, first published in 1962 and 1970, respectively, now available together in one volume, 2004 by the Ludwig von Mises Institute. Personal opinion note: I think Rothbard does an outstanding job of elaborating upon Human Action and working out its ramifications; Then he drives over a cliff. Consume responsibly.
- Reisman, George. Capitalism, 1998 by Jameson Books,
. This 13-pound suitcase bomb is the culmination of all of the above. Ottawa, IL
The Top Five Most Dangerous Anti-capitalist Rants
Know your enemy.
- Marx, Karl. Capital: A Critique of Political Economy (a.k.a. in German, 'Das Kapital'), first published circa 1866; see 1976/1992 by Penguin Classics
- Marx, Karl. The Communist Manifesto, first published circa 1848; see 2002 by Penguin Classics
- Keynes, John Maynard. The General Theory of Employment, Interest and Money, 1953 by Harcourt Brace Jovanovich.
- Galbraith, John Kenneth. The Affluent Society, first published 1958; see 1998 by Mariner Books.
- Galbraith, John Kenneth. The Great Crash 1929, first published 1955; see 1997 by Mariner Books.
Other Books of Interest
·Sowell, Thomas: Knowledge and Decisions, The Search for Cosmic Justice, A Conflict of Visions, Migrations and Cultures, Conquest and Cultures, Capitalism and Freedom.
·Von Mises, Ludwig: Bureaucracy, Socialism.
·Gilder, George: The Spirit of
·Von Hayek, Friedrich: The Errors of Socialism.
·Rand, Ayn: The Fountainhead, Atlas Shrugged.
·Wanniski, Jude: The Way the World Works.
·Bartley, Robert: The Seven Fat Years.
·Schlessinger, Laura: The Ten Commandments: The Significance of God’s Laws in Everyday Life.
·Opitz, Edmund: Capitalism and Religion: Allies not Enemies.
·God: My Holy Word (The Bible --- pick your translation carefully)
Saturday, May 20, 2006
- Capitalism is the solution to all economic problems.
- Capitalism is the solution to all domestic political problems.
- Capitalism is the solution to all international political problems.
- Capitalism is the solution to all environmental problems.
- Capitalism is the only rational, viable economic system (in other words, the only one that actually works!).
- Capitalism is more beneficial to poor people than to rich people.
- Capitalism is the only morally defensible economic system.
- Capitalism is essential to the survival of the human race.
Unfortunately, these truths have been so obscurred by mushy thinking, emotional ideology and systematic assault on the part of the Western intellectual elite and news media, that the still most properous and free nation on Earth, the nation most commonly associated with Capitalism, can hardly be described as a truly capitalist nation today. The consequences of this, if not reversed, are extremely dire, not only for Americans, but for the entire world and human species.
Friday, May 19, 2006
The issue of illegal immigration into the
A look at our history would be beneficial if we truly want to find policies which will minimize our problems and conflicts down the road; we’ve been through all this before.
Pioneers and Outlaws
200 years ago,
For generations, the landowners and governors fought the squatters, in the courts and in the country. Armies were dispatched to evict illegal claimants, burn their barns and houses, destroy their fences and tear up their fields. Recalcitrant squatters were imprisoned. The landowners had the law and the high ground on their side; the squatters were clearly in flagrant violation of private (and public) property law, having stolen, without compensation or consent, the most durable and fundamental of all economic goods: land.
Yet over time and to an increasing degree, courts began to side with the squatters. In part this may have been the result of sheer, overwhelming numbers; there were thousands of immigrants pushing west, thousands of court cases. But there also emerged a genuine, defensible legal principle. The squatters were not just stealing land and depriving its rightful owners of its use; they were improving the land, making it livable and productive. The houses, fences, barns and cleared and plowed fields made the land more valuable than it had been, producing agricultural goods for the local, eastern, or even global markets. Courts began to recognize that evicting squatters from land they had thus improved was as much if not a greater violation of private property rights as the offense of squatting in the first place. Evicted squatters began to demand compensation for what had been taken from them, and courts with increasing frequency ruled in their favor. The legal principle and precedent of ‘preemption’, giving preferential rights to settler who had made improvements to land came to be recognized as a guiding principle.
For their part, the squatters and pioneers developed local legal systems of their own for establishing, recognizing and defending the legitimacy of claims to land. ‘Tomahawk rights’, ‘Cabin rights’ and/or ‘Corn rights’ (staking a claim by marking or deadening trees with a hatchet, building a cabin and/or raising a crop), and their elaborations and variations, were examples of this informal social contract. After gold was discovered in
The Homestead Act of 1862 was the culmination of generations of struggle over this issue, conferring legitimacy to the extralegal claims and local agreements of communities distant from the sophisticated eastern cities. Under the Homestead Act, anyone could acquire a recognized and protected claim to 160 acres (a quarter of a square mile) for the trouble of living on it and making improvements for 5 years. In 1866 the US Congress belatedly (by 18 years) declared the mining of mineral resources on government owned land to be a legal, legitimate activity for cititizens of the
* * *
How much more difficult it must have been in those days to reconcile the legal issues surrounding squatting! The violation of the written and officially sanctioned law was so blatant and obvious that honest and educated people could hardly be persuaded any other way. The squatters were not merely an eyesore or a nuisance; they were actually taking physical property from its rightful owners, a dozen acres times a thousand immigrants at a time. Yet over time we as a nation came to realize that however logical and clear-cut the official law seemed, it was out of step with reality, to wit:
- The immigrants are coming and they’re not going back. The promise of a better life in
is too powerful a draw to hold back the flood; to expect otherwise would be to expect America to flow upstream. Niagra Falls
- The immigrants are performing work and adding economic value beneficial to health of the nation. The work on the land improves the value of the land; the product of the land feeds, clothes and provisions more people more cheaply throughout the country and beyond.
- The lives, property, and liberty of poor immigrants are as sacred and defensible as those of lettered statemen and wealthy merchants. The american brand of the Judeo-Christian tradition, combined with the independent spirit and willingness of the common people to fight for their dignity and rights, ensured that the concerns of all citizens regardless of rank be respected.
Applying the lessons to today’s problems
The same principles are applicable today. In fact, it should be easier to accept and assimilate immigrants at a rate in harmony with reality for the simple fact that they are not stealing anything that isn’t given to them. With the exception of a minute minority of political activists, they are not claiming land for themselves or
Is this conclusion unrealistic or naive in a post-9/11 world? What about terrorism? What about the crimes committed by illegal aliens? What about the drug traffic? The youth gangs? What about repatriation; all the money they send back to their families in
In light of global radical islamic terrorism, organized crime and individual cases of murder, theft, assault and so on, the
Rather, we need to make it easy for people willing to use their own resources to voluntarily and legally cooperate with others, to do so; make it advantageous to them to be part of the system.
We can never have a 100% guarantee against terrorism or crime. But with more people coming to America through legal channels and fewer ‘sneaking’ across the border, the terrorists and criminals will be easier, not more difficult, to expose and pursue.
South American immigrants know the difference between themselves and arabic-speaking middle-eastern men. Any terrorists attempting to blend in with the crowd crossing the border illegally would be highly suspect and have a high probablility of being ‘outed’. Mexicans don’t want the
Throughout history and in all civilizations, people at all strata of society have sought to insulate themselves from ‘unfair’ competition. Politicians have reponded to the calls with tarrifs, trade barriers, taxes, privileges and regulations. The elite brittish colonists in east
In every case, however well-intentioned, protectionism breaks down as a viable principle, because there is no principle to defend. If I can buy a shirt made in
The fact is, every single one of us is in competition and cooperation with each other all the time. For my personal part, with my bachelor’s degree in Music and professional work in computer software development, I compete almost directly with Phd computer scientists from
There is no law, no wise lawgiver, no perfect program that can sort out all the justice so that everyone has a perfectly ‘level playing field’ on which to compete for customers and employers. The insistence on pursuing that Utopia leads to chaos, as pressure group after pressure group jockeys for advantage through the political process, vying for legislation favorable to their interests and unfavorable to other sectors of the same society; the steel manufacturers against the manufacturers of products that use steel; the milk or sugar farmers against the consumers, the consumers against the producers, the employees against the employers. The result is a tangled web of contradictory and self-defeating laws and a million-page tax code that not a single professional employee of the Internal Revenue Service can comprehend in its entirety.
We have to realize that in our quest for justice here on an imperfect Earth, the only laws that are viable and defensible in the long run are those that derive from the original 5 secular commandments: It is forbidden to murder, to rob, to rape, to falsely prosecute or to conspire to do any of the above out of envy or jealousy. That’s it! Any law that does not credibly derive from those simple five is suspect. Offering or accepting goods, services, or employment on a voluntary basis, by mutal consent of contracting parties, cannot be made illegal. There is no right not to have to compete.
Moreover, in the end the advantage of being protected is illusory. For if the competition for 12 million jobs goes away, so necessarily does the productivity of those same 12 million workers. The price of every commodity, good or service produced by the additional hands must necessarily rise, increasing the cost of living for everyone, including those who we might seek to ‘protect’ by keeping the competition out.
Free and open competition benefits the whole of society more completely and equitably that any form of favoritism, credentialism or protectionism.
It is often charged to illegal immigrants that they are bankrupting our society through welfare and the ad hoc use of hospital emergency rooms for routine and emergency services, such as delivering american-citizen babies. These are very real problems that cannot be dismissed or ignored.
They also cannot be blamed on illegal immigrants.
With the exception of outright fraud, the failure of social programs cannot be blamed on those who accept their services and take their promises at their word. The fact is, the welfare state and government interference in the practice of medicine are inherently unstable and unviable systems. Socialism doesn’t work, period, because it destroys not only the incentives, risks and rewards of the free market, but destroys the very information base upon which decisions are to be made. No manager of a social program, hospital or business can make a decision which maximizes social welfare or justice, if profit and loss are taken out of the equation. If prices do not reflect true costs, if success is not measured by people’s willingness to voluntarily exchange their goods, services and money for those of the enterprise, then the manager cannot know what are the most urgent needs of customers or citizens and cannot know which resources are more scarce or more abundantly available for use in executing the Plan; the whole system breaks down. This is the result of forcing some people to provide goods and services without compensation, or at below-market compensation, while forcibly giving away wealth, money, goods and services to others for nothing other than a social identity or profile that the government, run by the prevailing political factions of the day, have identified as ‘worthy’. Socialism resulted in the collapse of the
All of this is entirely independent of illegal immigration; the problems inherent in socialism, collectivism, the welfare state and interventionsism will fester with or without illegal immigration. However, they also create perverse incentives which attract more illegal immigration than would otherwise be the case, and lead to the worsening of those same inherent problems.
Reform (eliminate) welfare and remove the heavy hand of government from medicine, and the problems linking illegal immigration to welfare fraud and hospital bankruptcy will be solved; not magically, but voluntarily through private initiative and cooperation. Doctors and hospitals existed in the
One may reasonably ask, if we allow hospitals to turn away patients who lack the proven ability to pay, won’t that lead to patients dying in the streets? The response is equally reasonable: if hospitals are forced into bankruptcy because they have no right to contract on mutually agreed-upon terms with patients, as IS occurring in
It is commonly charged to the illegals, that they are robbing us by sending their earnings to family back home. This ‘charge’ is problematic for a number of reasons. To whom does the money belong, all else being equal, after it has been duly earned through the voluntary provision of services? If the people paying the money to the workers did so voluntarily, which presumably they did, that can only be because they valued the service more than they did that amount of money, to which they no longer can make any legal or moral claim. Shall we tell people how to spend their own money after they’ve earned it? Shall we invite the families of the workers to join them here, that they might spend all the money here? Not if our complaint is that there’s ‘too many’ of them. Rather, private businesses could see a market opportunity for increased exports to
It might be worth re-considering the constitutional right to citizenship based on birth within the geographical area. It was a reasonable policy at a time when the nation itself was being born. How many nations around the world practice this today? If immigrants could not procure instant citizenship for their children, would that not reduce the incentive to come to the
Illegal at Home
The immigrants whom we call illegal in America today are much like those squatters of the 18th and 19th century; viewed by many as a nuissance, living on the periphery of the official legal and property systems. What seems to be missing from our discussion today is that the ones we call ‘illegal’ here are de facto just as much illegal in their own countries, perhaps even more so. People come to our shores because where they live, the system has shut them out. Employment is micro-managed by corrupt governments for the benefit of political cronies. Private property is not respected, documented or leverageable, such that even if one owns a house and some land, one can’t get a mortgage or a bank acount, or even be guaranteed that it won’t be taken away by someone with a bigger stick. Either a local gang will disregard your title conferred by the national governement and rob you, or the national government will ignore the local agreements and rob you.
Just as we accomplished in the 19th century, third world countries must find the way to rationalize their legal and property systems, so that the majority of the population, not just the elite, are included. Only when that happens can the flood of economic refugees abate. Americans can help other countries through diplomatic, legal and private channels to achieve this.
There is no restriction on immigration from (Spanish-speaking)
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Copyright © 2006 by Howard Hyde. All rights reserved.
Support for the historical analysis in this article comes in the main from The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else:, by the Peruvian economist Hernando